Cummins (CMI) Stock Analysis

November 11, 2026

This is a peer-relative look at Cummins (CMI): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Cummins (CMI)
Profile Item	CMI
Name	Cummins Inc.
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Capital Goods
GICS Industry	Machinery
GICS Sub-Industry	Construction Machinery & Heavy Transportation Equipment
Market Capitalization	61.69 billion USD
Currency	USD
Exchange	NYSE
Listing Date	February 21, 1973
Security Type	Common Stock

Price Performance

Cumulative Growth

CMI

GSPC

Cummins (CMI) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cummins (CMI) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cummins (CMI) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
Total Return (1Y)	-0.52%	6.84%
Total Return (3Y, Annualized)	31.79%	17.66%
Total Return (5Y, Annualized)	17.12%	9.09%

Risk Profile

Drawdown History

CMI

GSPC

Cummins (CMI) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cummins (CMI) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
Volatility (1Y, Annualized)	36.83%	44.38%
Beta (5Y)	1.26	1.19
Max Drawdown (5Y)	-38.12%	-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. CMI is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
Sharpe Ratio (1Y)	-0.13	0.06
Sortino Ratio (1Y)	-0.18	0.09

Profitability

ROE (TTM)

Cummins (CMI) posts ROE of 25.05%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

CMI

Capital Goods industry group

25.05%

Group distribution

Max: 40.55%
CMI: 25.05%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Largest peers

GEV: 93.04%
CAT: 56.14%
GE: 50.17%
CMI: 25.05%
DE: 18.24%
RTX: 12.85%
BA: --

Where Cummins (CMI) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Cummins (CMI) keeps 9.26% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

CMI

Capital Goods industry group

9.26%

Group distribution

Max: 27.47%
Q3: 12.10%
CMI: 9.26%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Largest peers

GEV: 23.54%
GE: 17.31%
CAT: 15.21%
DE: 10.17%
CMI: 9.26%
RTX: 8.75%
BA: 8.07%

Where Cummins (CMI) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Cummins (CMI) turns 13.95% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

CMI

Capital Goods industry group

13.95%

Group distribution

Max: 36.60%
Q3: 18.33%
CMI: 13.95%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Largest peers

CAT: 20.19%
GE: 18.49%
RTX: 15.54%
CMI: 13.95%
DE: 13.37%
GEV: 12.77%
BA: 0.30%

Where Cummins (CMI) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
ROE (TTM)	25.05%	12.12%
ROA (TTM)	7.60%	5.29%
Net Margin (TTM)	9.26%	6.30%
Operating Margin (TTM)	13.95%	11.12%
Gross Margin (TTM)	26.32%	29.63%

Growth

Revenue Growth

Cummins (CMI) grew revenue -1.27%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

Cummins (CMI): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

Cummins (CMI) grew earnings per share -27.74%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.

Cummins (CMI): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
Revenue Growth (YoY)	-1.27%	8.11%
Revenue Growth (3Y CAGR)	6.25%	6.45%
EPS Growth (YoY)	-27.74%	5.45%
EPS Growth (3Y CAGR)	10.68%	7.15%

Financial Strength

Current Ratio (MRQ)

Cummins (CMI) has current ratio of 1.74, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

CMI

Capital Goods industry group

1.74

Group distribution

Max: 5.22
Q3: 2.95
Median: 2.08
CMI: 1.74
Q1: 1.43
Min: 0.36

Largest peers

DE: 2.13
CMI: 1.74
CAT: 1.42
BA: 1.13
RTX: 1.05
GE: 0.98
GEV: 0.83

Where Cummins (CMI) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Cummins (CMI) has debt-to-equity ratio of 0.52, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

CMI

Capital Goods industry group

0.52

Group distribution

Max: 2.33
Q3: 1.12
Median: 0.60
CMI: 0.52
Q1: 0.29
Min: 0.00

Largest peers

BA: 7.39
DE: 2.30
CAT: 2.10
GE: 1.16
RTX: 0.55
CMI: 0.52
GEV: 0.30

Where Cummins (CMI) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
Current Ratio (MRQ)	1.74	2.08
Debt / Equity (MRQ)	0.52	0.60
Net Debt / EBITDA	0.62	1.78

Dividends

Dividend Yield (TTM)

Cummins (CMI) has dividend yield of 1.83%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

CMI

Capital Goods industry group

1.83%

Group distribution

Max: 2.66%
CMI: 1.83%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Largest peers

CMI: 1.83%
RTX: 1.47%
CAT: 1.13%
DE: 0.98%
GE: 0.56%
GEV: 0.26%
BA: 0.00%

Where Cummins (CMI) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Cummins (CMI) has payout ratio of 34.21%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

CMI

Capital Goods industry group

34.21%

Group distribution

Max: 67.39%
CMI: 34.21%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Largest peers

RTX: 45.85%
DE: 36.02%
CMI: 34.21%
CAT: 24.18%
GE: 20.23%
GEV: 4.59%
BA: 0.00%

Where Cummins (CMI) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
Dividend Yield (TTM)	1.83%	0.24%
Dividend Payout Ratio (TTM)	34.21%	6.86%

Valuation

P/E Ratio (TTM)

Cummins (CMI) trades at P/E ratio of 18.78, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

CMI

Capital Goods industry group

18.78

Group distribution

Max: 59.38
Q3: 35.92
Median: 25.41
Q1: 19.47
CMI: 18.78
Min: 3.03

Largest peers

DE: 37.33
GE: 36.94
RTX: 30.82
CAT: 21.92
GEV: 20.32
CMI: 18.78
BA: 17.89

Where Cummins (CMI) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Cummins (CMI) trades at 1.72 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

CMI

Capital Goods industry group

1.72

Group distribution

Max: 7.54
Q3: 3.76
Median: 2.15
CMI: 1.72
Q1: 1.03
Min: 0.03

Largest peers

GE: 6.38
GEV: 4.65
DE: 3.78
CAT: 3.29
RTX: 2.66
CMI: 1.72
BA: 1.45

Where Cummins (CMI) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Cummins (CMI) trades at 4.63 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

CMI

Capital Goods industry group

4.63

Group distribution

Max: 9.66
Q3: 5.00
CMI: 4.63
Median: 3.12
Q1: 1.81
Min: -1.08

Largest peers

BA: 20.99
GE: 19.06
GEV: 18.00
CAT: 11.90
DE: 6.47
CMI: 4.63
RTX: 3.69

Where Cummins (CMI) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Cummins (CMI) metric values compared with Capital Goods industry-group medians
Metric	Current stock: CMI	Industry group median
P/E Ratio (TTM)	18.78	25.41
P/S Ratio (TTM)	1.72	2.15
P/B Ratio (MRQ)	4.63	3.12
Free Cash Flow Yield (TTM)	4.06%	3.03%